Forex Weekly Watch: May 23-27, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Remember that descending triangle I showed y’all last week? Well, it looks like the triangle resistance is holding like a boss, as it kept pushing EUR/JPY lower on each test. Price could be in for a test of the near-term support around the 123.00 major psychological level from here, with a break lower leading to a drop until the next major support at the triangle bottom around 121.75. On the other hand, an upside breakout from the top of the triangle and 124.00 mark could lead to a climb to top WATR, depending on this week’s events from Japan and the euro zone.

  • WO: 123.49
  • Top WATR: 124.77
  • Bottom WATR: 122.22
  • PWH: 124.19
  • PWL: 122.62

GBP/JPY

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

It looks like Guppy is in a symmetrical triangle pattern rather than the ascending triangle formation I was looking at! Price seems to be headed south once more, possibly aiming for the bottom WATR or the previous week low closer to the triangle support. Stochastic is on the move down so pound bears are in control at the moment, but the BOE Inflation Report hearings could add more volatility to the mix mid-week.

  • WO: 159.81
  • Top WATR: 162.23
  • Bottom WATR: 157.39
  • PWH: 161.63
  • PWL: 155.69

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

EUR/GBP made a downside break from the head and shoulders neckline, signaling that a reversal from the previous uptrend is in order. Price found a floor at .7650 and is now pulling up to the broken support around the .7750-.7800 area near the top WATR and Fibonacci retracement levels. If any of these keep price gains in check, the pair could resume its drop to the bottom WATR and previous week low.

  • WO: .7724
  • Top WATR: .7800
  • Bottom WATR: .7648
  • PWH: .7894
  • PWL: .7650

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